I did it your way. An experimental investigation of peer effects in investment choices

•We experimentally investigate imitation in investment choices.•We focus on cognitive aspects of decision making.•Information more representative of group behavior induces stronger imitation.•Higher time pressure fosters imitation.•Uncertainty makes imitation less attractive. We experimentally inves...

Full description

Saved in:
Bibliographic Details
Published in:Journal of economic psychology 2016-06, Vol.54, p.113-123
Main Authors: Delfino, Alexia, Marengo, Luigi, Ploner, Matteo
Format: Article
Language:English
Subjects:
Behavioral economics
Behavioural economics
Bounded rationality
Cognitive ability
Decision making
Experiments
Hypothesis testing
Investment
Investment decisions
Peer effects
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:•We experimentally investigate imitation in investment choices.•We focus on cognitive aspects of decision making.•Information more representative of group behavior induces stronger imitation.•Higher time pressure fosters imitation.•Uncertainty makes imitation less attractive. We experimentally investigate imitation in investment choices and focus on cognitive aspects of decision making. At this aim, we manipulate three main dimensions of choice: time pressure, normative content of social information, and uncertainty of the investment. We document the existence of imitation. In line with our hypotheses, a piece of information which is more representative of average group behavior induces stronger imitation. Furthermore, higher time pressure fosters imitation. In contrast to our hypothesis, imitation is weaker for uncertain investments than for risky investments.
ISSN:0167-4870
1872-7719
DOI:10.1016/j.joep.2016.03.005